Saudi Re H1 2022 Results Show Improved Underwriting Performance, Growth in Inherent Defects Insurance (IDI)

Saudi Reinsurance Company (Saudi Re) today announced its financial results for the first half of the current financial year 2022 with improved operating results by 8% compared to the previous year registering SR 24 million (USD 6.39 million).

The Company recorded gross written premium (GWP) of SR 920 million (USD 244.95 million) compared with SR 955 million (USD 254.27 million) in the similar period of the previous year. This was propelled by a staggering growth in the second quarter with a rate of 166 percent recording a GWP of SR 321 million (USD 85.26 million). 

The systemic volatility caused by increased interest rates and foreign currency fluctuations, affected the bottom line and resulted in a decline in net profit before zakat by 62 percent recording SR 14 million (USD 3.72 million) for the first half of 2022. 

Commenting on the first half results, Saudi Re MD & CEO, Fahad Al-Hesni noted that Saudi Re has maintained a well-balanced underwriting portfolio with 52 percent international business, while keeping focus on risk selection which reflected positively on the underwriting performance. He further highlighted the strong growth of Saudi Re’s recent product, the inherent defects insurance (IDI), and recorded GWP of SR 223 million (USD 59.37 million) which indicates positive prospects for growth given that Saudi Re holds the privilege to exclusively reinsure the mandatory IDI program. 

The Kingdom’s sole reinsurer received the Central Bank’s (previously known as SAMA) approval to increase capital to SR 1.334 billion (USD 355.18 million) through right issue offering for the purpose of strengthening the company’s capital base and supporting future expansion initiatives domestically and internationally as part of its Strategy Toward 2026.  

Furthermore, Saudi Re maintained a strong financial position with a A3 financial strength rating by Moody’s. Total equity increased by end of first half to SR 965 million (USD 256.94 million) compared with SR 957 million (USD 254.80 million) in the previous year, while technical reserves were further strengthened to reach SR 1.6 billion (USD 426 million) and total assets exceeded SR 3.7 billion (985.15 million) by end if the first half. 

Saudi Re operates in more than 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK, and specializes in life and non-life treaty and facultative reinsurance solutions.